Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, for-profit educator DeVry (NYSE: DV ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at DeVry's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Downers Grove, Ill. (1931)|
|Market Cap||$2.63 billion|
|Trailing-12-Month Revenue||$2.18 billion|
|Management||CEO Daniel Hamburger (since November 2006)
CFO Timothy Wiggins (since December 2011)
|Return on Equity (Average, Past 3 Years)||23.9%|
|Cash/Debt||$325 million / $0|
ITT Educational Services
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 12% of the 294 members who have rated DeVry believe the stock will underperform the S&P 500 going forward.
It's a very simple play, for-profit colleges are enrolling ever fewer students because they are not only expensive, but of dubious value. This is not something seen at just one college, but look at all the for profits. They may beat eps, but ever declining new students will mean continue decline in earnings creating a vicious cycle of ever lower p/e. Until they fundamentally prove their worth and get it out, I don't see how they are going to succeed in the long term.
On a side note, this company tries to spin their diversification strategy as helping them weather the storm. It's a joke when you diversify your education portfolio.
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